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DECREE

On the organization and operation of maritime pilotage

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 14, 2005 Vietnam Maritime Code;

Pursuant to the November 29, 2005 Enterprise Law;

At the proposal of the Minister of Transport,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation and subjects of application

1. This Decree provides for the organization and operation of maritime pilotage.

2. This Decree applies to maritime pilotage organizations (referred to as pilotage companies), persons performing maritime pilotage tasks (referred to as pilots) and agencies, organizations and individuals related to the organization and operation of maritime pilotage in Vietnam.

Article 2.- Interpretation of terms

1. Areas where maritime pilotage is compulsory (referred to as compulsory pilotage areas) are areas within seaports' water areas or offshore oilfields stretching from the areas where pilots board or leave vessels to wharves, harbors, anchoring areas, transshipment areas, storm shelters, shipbuilding and repairing plants, offshore petroleum depots and vice versa where vessels must be steered by pilots in accordance with the Vietnam Maritime Code. A compulsory pilotage area has one or several vessel-steering channels.

2. Areas where maritime pilotage is not compulsory (referred to as non-compulsory pilotage areas) are water areas outside compulsory pilotage areas defined in Clause 1 of this Article.

3. Areas where pilots board or leave vessels are areas within the compulsory pilotage areas where vessels anchor to receive or return pilots.

4. Vessel-steering channels are navigable channels of vessels steered by pilots from pilot-receiving areas to wharves, harbors, anchoring areas, transshipment areas, storm shelters, shipbuilding and repairing plants of a seaport or offshore oil depot within a compulsory pilotage area.

Chapter II

ORGANIZATION AND OPERATION OF MARITIME PILOTAGE

Article 3.- Principles on organization and operation of maritime pilotage

1. Maritime pilotage services are public-utility services subject to conditional business which comply with Article 4 of this Decree.

2. A pilotage company may operate within a compulsory pilotage area only.

3. One or several pilotage companies may operate within a compulsory pilotage area, depending on the number of vessel-steering channels of this compulsory pilotage area.

4. Maritime pilotage services in a vessel-steering channel may be provided by only one pilotage company.

5. The State shall perform the uniform management of maritime pilotage organizations and operation in order to ensure maritime navigation safety and security and prevention of environmental pollution.

Article 4.- Conditions for organization and operation of pilotage companies

1. Pilotage companies are enterprises with 100% state capital.

2. Pilotage companies must have pilots of all ranks and vessels for transporting pilots in accordance with regulations of the director of the Vietnam Maritime Administration.

3. Pilotage companies shall be assigned plans on, or ordered for, the provision of vessel-steering services in compulsory pilotage areas or specific vessel-steering channels.

Article 5.- Establishment and business registration of pilotage companies

The establishment and business registration of pilotage companies comply with the Enterprise Law.

Article 6.- Procedures for allocation of pilotage areas or vessel-steering channels

1. A dossier of application for allocation of a pilotage area or vessel-steering channel comprises:

a/ A written request;

b/ A copy of the business registration certificate of the company;

c/ A list of pilots, enclosed with copies of the maritime pilotage competence certificate and the maritime pilotage area certificate of each pilot;

d/ A list of pilot-transporting vessels, enclosed with copies of registration certificates of these vessels.

2. Order of allocation of pilotage areas or vessel-steering channels:

a/ The pilotage company shall send to the Vietnam Maritime Administration a dossier defined in Clause 1 of this Article;

b/ The director of the Vietnam Maritime Administration shall decide on the allocation of a pilotage area or vessel-steering channel to the company within 15 working days after receiving a valid and complete dossier; in case of refusal, he/she shall issue a written reply clearly stating the reasons.

Article 7.- Rights, obligations and responsibilities of pilotage companies

1. To provide and satisfy the demands for maritime pilotage services in the allocated compulsory pilotage areas or vessel-steering channels, ensuring service quality, maritime navigation safety and security and prevention of environmental pollution in accordance with law.

2. To formulate plans on the provision of pilotage services for submission to competent agencies for the latter to consider and assign plans on or place orders for services and organize the implementation of these plans.

3. To make daily plans on arrangement of pilots to steer vessels and notify these plans to port authorities for uniform implementation; in case of changes, to promptly notify these changes and clearly state the reasons. Directors of pilotage companies must satisfy shipowners' or their representatives' request for a specific pilot; if not, they must clearly state the reasons and arrange another pilot for substitution.

4. To coordinate with maritime navigation safety assurance organizations, port enterprises, shipowners' agents and concerned agencies and organizations in the areas in organizing the provision of maritime pilotage services in a safe and efficient manner.

5. To manage operations of pilots, ensuring timely satisfaction of requirements for the provision of maritime pilotage services and the diligence of pilots while performing their tasks.

6. To exercise other rights and perform other obligations and responsibilities of pilotage companies as prescribed by law.

Article 8.- Legal status of pilots

1. The maritime pilot shall advise the shipmaster on navigating the vessel in accordance with navigational conditions in the areas where the maritime pilot steers the vessel. The employment of maritime pilots shall not relieve the shipmaster of the responsibility to command the vessel.

2. While steering the vessel, the maritime pilot is under the command of the shipmaster of the steered vessel.

3. The shipmaster of the steered vessel may choose a maritime pilot or suspend the maritime pilot's service and request his/her substitution in case the maritime pilot fails to satisfy professional requirements or law-established conditions. If suspending the operation of or replacing a maritime pilot, the shipmaster of the steered vessel shall promptly notify such to the director of the pilotage company and the director of the concerned port authority.

Article 9.- Responsibilities of pilots

1. To exercise rights and perform obligations in accordance with Articles 172, 173 and 175 and relevant provisions of the Vietnam Maritime Code.

2. To strictly observe the assignment by directors of pilotage companies at the request of the shipmaster. In case of refusing to steer a vessel for a plausible reason, to report the reason to the director of the pilotage company and the director of the port authority for timely settlement.

3. To wear uniforms prescribed by the director of the Vietnam Maritime Administration.

4. To be prohibited from causing difficulties, harassing or committing other negative acts towards enterprises or vessels requiring pilots.

Article 10.- Cases of exemption from employment of pilots and permission for self-steering of vessels in compulsory pilotage areas

1. Foreign vessels of a total tonnage of under 100 GT, Vietnamese vessels carrying passengers, oils or liquefied gas of a total tonnage of under 1,000 GT and other Vietnamese vessels of a total tonnage of under 2,000 GT are exempt from employment of maritime pilots.

2. Shipmasters of vessels who are Vietnamese citizens and possess a maritime pilotage competence certificate and a maritime pilotage area certificate in conformity with the type of their vessels and maritime pilotage areas where their vessels are operating may steer their vessels by themselves, but shall notify such in advance to the concerned port authority.

3. To encourage enterprises to train pilots to steer vessels in accordance with regulations.

Article 11.- Financial mechanisms for operation of pilotage companies

1. Pilotage fees constitute a state budget revenue. Port authorities shall collect and remit pilotage fees into the state budget.

2. The Ministry of Transport shall specify norms of public pilotage services.

3. The Ministry of Finance shall specify unit prices for pilotage services at the proposal of the Ministry of Transport; and coordinate with the Ministry of Transport in specifying financial mechanisms for pilotage services.

Article 12.- Responsibilities for management of maritime pilotage activities

1. The Ministry of Transport shall perform the uniform state management of maritime pilotage activities in Vietnam through the Vietnam Maritime Administration.

2. The director of the Vietnam Maritime Administration shall:

a/ Announce vessel-steering channels in compulsory pilotage areas;

b/ Provide for the minimum number of pilots of all ranks and pilot-transporting vessels on each vessel-steering channel;

c/ Decide on the allocation of pilotage areas or vessel-steering channels to pilotage companies.

3. Port authorities shall manage maritime pilotage activities in their areas in accordance with this Decree and relevant legal provisions.

Chapter III

IMPLEMENTATION PROVISIONS

Article 13.- Reorganization of the existing maritime pilotage under the Vietnam Maritime Administration

The Minister of Transport shall decide on the merger and consolidation of existing maritime pilotage organizations under the Vietnam Maritime Administration into independent pilotage companies.

Article 14.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO." Previous regulations contrary to this Decree are annulled.

Article 15.- Implementation responsibilities

1. The Ministry of Transport shall guide and organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, the director of the Vietnam Maritime Administration, and concerned agencies, organizations and individuals shall implement this Decree.